The Golden Rule of ethics is: “Justice is nothing else than the interest of the stronger.”
At most companies CSR is still incidental, and rarely supplemental, to core business
strategies.
The pay of top corporate officers is set by the board of directors.
Training is the key to communicating ethics and compliance knowledge.
At most companies the chairman of the board is the CEO, giving him/her a dual role.
Retributive justice allows that pay raises can be distributed on the basis of friendship
rather than on performance.
According to the radical Progressives, corporate social responsibility is an insufficient
doctrine.
Rights are an absolute doctrine with definite limits.
The great run of free trade ended with World War I, which inflamed global markets with
national conflicts.
In the United States, the Progressive movement was the first movement to protect the
consumers.
Even as nations’ nontariff barriers have generally fallen, tariffs have multiplied.
The single measure that best captures the activity and power of MNCs is portfolio
investment.
What is right or wrong in a business decision involving ethical concerns is always a
clear decision.
Hazardous air pollutants are chemical emissions that pose a health risk of serious illness
such as cancer or birth defects with small inhalation exposures.
In the United States, common law holds that employers and employees may enter
voluntary employment contracts and that either party may freely end these agreements
anytime.
Economist Thorstein Veblen argued that in the new industrial society, people earned
their status by conquest in warfare.
The substitution of revenues from taxes on productivity for revenues from taxes on
pollution is known as the environmental tax reform.
The dominance model states that corporations act primarily for the good of most of the
people in the society.
Even today, occupational segregation places many women in female-dominated
occupations that tend to be lower paying than male-dominated ones.
The typical MNC is international rather than national.
Statutes rarely contain all the specific rules needed to assure that their intended purpose
is achieved.
An agrarian society is a preindustrial society in which economic, political, and cultural
values are based on agricultural experience.
Dystopia refers to a socially engineered model of alternative community that is
designed to correct faults in the world so its members can find happiness.
Though TNCs differ greatly in international dimensions, a single measure has been
created that can capture the definitive meaning of “transnational.”
When Congress passes an environmental law, Environmental Protection Agency
employees write the detailed, specific rules needed to make it work.
Measures enacted in the South from 1877 to the 1950s legalizing segregation in public
places, buses, trains, restaurants, schools, and businesses were known as Jim Crow
laws.
The invisible barrier of sex discrimination that thwarts the advance of women to top
corporate positions is known as bamboo ceiling.
During the Progressive era in U.S. history, business managers were considered to be
trustees of their local communities.
The Interstate Commerce Commission requires each agency to set up an adjudication
process leading to trial before an administrative law judge.
Congress not only passes and amends laws but also approves presidential nominees as
head regulators and makes appropriations to agencies.
The current WTO-led multilateral trading system has yet to produce a major advance in
trade liberalization.
Socialism is a classless social system in which property is collectively owned and
income from labor is equally and indiscriminately divided among members.
The principle of equal freedom can act as a tiebreaker when the rights of two managers
are in conflict.
According to the Environmental Protection Agency:
A.a sublinear relationship exists between the amount of exposure to a toxic substance
and the effect it has on human health.
B.in the absence of a clear understanding of dose-response relationships at low doses,
risk estimates should be based on a sublinear or threshold curve.
C.there should be more regulation to limit human exposure when the risk estimate is
based on the linear curve.
D.the higher the inferred risk, the more justification there is for high expenditures to
control polluting emissions.
Which of the following is a rare variant of the progressive model wherein a founder
with noble impulses left a culture inclined to corporate responsibility?
A.The local business
B.The large corporation
C.The traditional business
D.The small company
These cannot be sold until certain conditions are met, most often the lapse of a time
period or meeting a performance goal.
A.Performance shares
B.Perquisites
C.Stock options
D.Restricted stock
The Montreal Protocol set timetables to phase out worldwide:
A.elimination of leaded gasoline.
B.use of 96 ozone-depleting chemicals.
C.emission of greenhouse gases.
D.build-up of radon.
The burden of regulation can be measured or characterized by all of the following
methods EXCEPT:
A.impact of regulation on innovation.
B.total dollar cost.
C.cost of administering the regulatory process.
D.impact of regulation on unemployment.
A _____ is a group representing the interests of an industry or industry segment.
A.business roundtable
B.peak association
C.business alliance
D.trade association
Socialism poses a revolutionary challenge to _____ society because it requires a change
in property relationships that destroys bedrock arrangements.
A.communist
B.capitalist
C.anarchist
D.feudal
Which of the following is NOT an element of the regulatory options spectrum?
A.Market incentives
B.Voluntary compliance
C.Flexible enforcement
D.Contingent valuation
The right to purchase a specified number of shares of a company’s stock for a specified
price at a future date is called a:
A.stock bid.
B.stock option.
C.stock grant.
D.stock right.
A conclusion that can be drawn from the _____ model is that business is deeply
integrated into an open society and must respond to multiple economic and
noneconomic factors.
A.dominance
B.market capitalism
C.stakeholder
D.countervailing forces
A(n) _____ warranty is a categorical claim made by the manufacturer to the buyer
regarding a product or service.
A.tacit
B.express
C.implied
D.allusive
Which of the following enacted new regulations on auditing, financial reporting, and
legal compliance?
A.The Bankruptcy Act
B.The Sherman Antitrust Act
C.The Sarbanes-Oxley Act
D.The International Emergency Economic Powers Act
Separation of powers is the constitutional arrangement that separates the power of the:
A.federal government from the state governments.
B.central government of a sovereign state from the government at a subnational level.
C.elected legislature from other estates which are subservient to it.
D.legislative, executive, and the judicial functions of the national government into three
branches.
What are the two broad areas of business involvement in politics?
A.Lobbying and electoral activity
B.Lobbying and bribery
C.Gratuity and electoral activity
D.Bribery and gratuity
_____ is regulation by nonstate actors based on social norms or standards enforced by
social or market sanctions.
A.State regulation
B.Voluntary regulation
C.Civil regulation
D.Self-regulation
With regard to CSR, the growing number of board committees and vice presidents of
corporate responsibility implies more _____ than usually exists in practice.
A.decentralization
B.silent decentralization
C.centralization
D.libertarianism
When Hershey Foods states that its purpose is “to consistently create shareholder value
by achieving excellence in every aspect of our business,” this is called its:
A.social issue.
B.GRI.
C.corporate social reporting method.
D.mission statement.
Aristotle defined material possessions and money as:
A.determinants of adhocracy.
B.external goods.
C.goods of the soul.
D.determinants of socialism.
Adam Smith’s vision of _____ capitalism defined the essence of economic liberalism.
A.laissez-faire
B.modified market
C.neoliberal
D.state
Which of the following had a negative impact on traditional American society with the
introduction of trains and the subsequent extension of the railroads?
A.Bringing more youth into rural areas.
B.Giving frequent services to small towns.
C.Redefining of rural areas from cultural heartland to rustic places.
D.Centralization of corporate power in rural areas.
The Environmental Protection Agency (EPA) has set standards to curb emissions of
criteria pollutants. What are they?
What is the primary mission of the International Monetary Fund?
A.To promote international economic stability.
B.To promote long-term development in the poorest countries.
C.To promote international fair trade.
D.To overcome shortages of private capital.
As a first step in implementing corporate social responsibility, a corporation should:
A.engage in dialog with a range of stakeholders.
B.translate strategy into specific goals and performance objectives.
C.assess its current situation and activities.
D.develop an overall strategy for corporate responsibility.
A method of ethical reasoning in which insight comes from answering a list of
questions is known as the:
A.deontological approach.
B.critical questions approach.
C.general questions approach.
D.consequentialist approach.
A(n) _____ cost is a production cost not paid by a firm or its customers, but by
members of society.
A.internal
B.external
C.private
D.extraterritorial
Command-and-control regulation:
A.gives polluters financial motives to control pollution.
B.does not grant abatements.
C.helps determine the value of statistical life.
D.can increase costs without commensurate increases in benefits.
Tasks like revising or creating policies, budgeting resources, and assigning work are a
part of the:
A.mission statement.
B.vision statement.
C.action plan.
D.code of conduct.
All of the following statements are true of FDI EXCEPT:
A.it is the financial process by which a corporation takes partial or total control of
foreign assets.
B.it is measured as the dollar value of funds invested by a parent corporation.
C.it is a short-term investment that can be sold anytime.
D.it is almost always made by transnational corporations.
The idea that business should be conducted without considering ethical standards or
societal ideals is known as the theory of:
A.moral responsibility.
B.amorality.
C.reciprocity.
D.ethical universalism.
The general rule that federal courts should defer to agency rules that are based on
reasonable interpretations of ambiguous statutes is known as the _____ doctrine.
A.laissez-faire
B.Act of State
C.Chevron
D.Bernal
Why is the American society considered to be a pluralistic society?
Explain what Thomas Donaldson and Thomas W. Dunfee meant by the concept of
“hypernorms.” Give examples of these types of norms.
Define dose-response assessment.
Following the Civil War, Congress passed three constitutional amendments designed to
protect the rights of former slaves. What were they?
What does materialism mean?
What are the factors that influence managerial ethics? Why is the example of company
leaders considered perhaps the strongest influence on integrity in a corporate culture?
Define the federal system.
On both the surface and deep levels, business power is exercised in spheres
corresponding to the seven business environments. Discuss with examples.
What is consequentialism?
Why were the strategic advantages of the fourth-tier model less compelling for
American manufacturers?
What are NAFTA, AFTA, and Mercosur?
Discuss the United Nation’s efforts to promote MNC social responsibility and to
harness FDI for economic development.
What are the core labor standards? Define labor flexibility.
What is meant by the nenko curve?
What is regulation? What is the first step in the creation of a new regulation?
What are the three most common reasons for corporations to make foreign direct
investments?
Explain in brief the concept of business power.